Where we need innovation: the economic system

May 27, 2013

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in Envisioning the sustainable future, Sustainable Investment, Tools for a Sustainable Planet, Why we need change

The present economic system is a patchwork of taxes and subsidies and ideas that have been around since at least the 1800s. Tax upon tax has been added trying to bring control and equality to the system.

The picture here shows just the CATEGORIES of transactions involved and then just the most common. If we are going to create a sustainable way of life, to transform to where we need to go to ensure food and water and a roof for all, we need to make some sweeping changes.

Looking at it like this, it may not be too difficult: We could start by not allowing any poisoning of the commons, and planning a fast phase-out of externalisation in all forms. Putting a tax on what we don’t want, and making the things we do cheap is another strategy.

Trying to be sustainable without reforming the economic system is probably a waste of time, as it presents a compact wall of resistance to any move to sustainability. And it is so complex no-one seems to have a clear of idea of how it works anyway!

Webinar on flexible emission fee mechanisms

White paper on externalisation

Comments

One response to “Where we need innovation: the economic system”

steve

June 9, 2013

The tax and subsidy system we have has grown over the last 100 years being one pragmatic or ideological decision after the other. Problem is, like a house that’s had layers of wiring and pipes added year after year, no-one can see where anything is going or where it came from. It needs a total overhaul.

Back when it all started, there were no computers or networks, information flowed slowly and money was different. It was not debt, at least most of it wasn’t. Now we have another society: information readily available, highly connected and organised, and debt-based money.

We need to ask ourselves, what do we want the economy for? Then we can redesign it. If we do not start soon the whole thing might collapse and that will only favour those who already have a lot.

Where we need innovation: the economic system

Comments

One response to “Where we need innovation: the economic system”

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